Token Description & Project Background

Ziliqa is a Layer-1 blockchain built on sharded architecture. 

Sharding means that Zilliqa can divide its network into multiple categories. Each can process transactions in tandem. For example, if six shards (each with 600 nodes) process transactions individually, then all the shards will collectively be able to process around 2828 transactions per second. The sharded architecture allows the throughput of the platform to increase almost linearly as the network expands.

Zilliqa’s goal is to provide a secure and logical smart-contract layer to allow security-by-design, smart-contract programming, and verification.

The Ziliqa blockchain is powered by the ZIL token.

Zilliaq was developed by a National University of Singapore team comprised of Prateek Saxena, Max Kantelia and Juzar Motiwalla; they incorporated the project as Zilliaq Research in June 2017. 

Initially ZIL was an ERC-20 token before launching its own blockchain. ZIL is now administered by Zilliqa Research. 

Risks of ZIL

Like an investment in other crypto assets, there are some general risks to investing in ZIL. These include:  (i) volatility risk and liquidity risk, (ii) short history risk, (iii) demand risk, (iv) forking risk, (v) code defects, (vi) regulatory risk, (vii) electronic trading risk, and (viii) cyber security risk. For additional information of these and other general risks associated with crypto assets and Uphold’s platform, please refer to the Risks Specific to Holding Digital Assets statement.

In addition to these general risks, an investment in ZIL is subject to the following specific risks:

• The Layer-1 space faces intense competition. Any potential success associated with ZIL depends on Ziliqa’s rate of adoption.
• Zilliqa is coded in a ‘Non-Turing Complete Language’, which could limit the level of complexity of applications built on the blockchain compared to competitors.

We emphasize that this Crypto Asset Statement is not an exhaustive description or summary of all risks associated with ZIL. Investors should conduct their own research and perform their own assessment before trading any crypto asset to determine the appropriate level of risk for their personal circumstances.

The ZIL community and the Ziliqa founding team are not under any legal or regulatory obligation to disclose material information to the public regarding its activities. Holders of ZIL have no recourse to the ZIL community, Ziliqa founding team, or Uphold if ZIL declines in value for any reason.

Changes to applicable law may adversely affect the use, transfer, exchange, or value of any of your crypto assets, and such changes may be sudden and without notice.

Uphold’s Evaluation Process

Prior to listing ZIL on the Uphold Platform, Uphold performed due diligence on ZIL and determined that ZIL is unlikely to be a security or derivative under relevant securities legislation. Uphold’s analysis including reviewing publicly available information on the following: 

• The creation, governance, usage, and design of ZIL, including ensuring the source code is open-source, audited and peer reviewed, security, and roadmap for growth in the developer community. 
• The supply, demand, maturity, utility, and liquidity of ZIL.
• Any marketing materials put forward by the ZIL social team including on, Twitter, Medium blog, LinkedIn posts, Discord and Telegram channels.
• Material technical risks associated with ZIL, including any code defects, security breaches and other threats concerning ZIL and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them.
• Legal and regulatory risks associated with ZIL, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of ZIL. 

General

Uphold has prepared this Crypto Asset Statement based on publicly available information. Although Uphold has taken steps to obtain information from apparently reliable sources, information contained in this Crypto Asset Statement may be inaccurate, incomplete or out-of-date. This overview is a starting point for you to perform your own research prior to investing in a crypto asset.

Uphold users should read the Risks Specific To Holding Digital Assets statement for additional discussion of general risks associated with crypto assets made available through the Uphold platform.  

Canadian residents, please note that Uphold has filed an application for registration in certain Canadian jurisdictions but has not yet obtained registration. Until such time as Uphold obtains registration, Uphold has agreed to abide by the terms of an undertaking available at the following link. Please also review the Uphold Canada – Crypto Risk Statement for additional discussion of general risks associated with the crypto assets made available through Uphold Platform. Please be aware that statutory rights of action for damages or rescission in section 130.1 of the Securities Act (Ontario) and, if applicable, similar statutory rights under securities legislation in the other provinces and territories of Canada do not apply in respect of this Crypto Asset Statement or other disclosures on the Uphold website and Risks Specific To Holding Digital Assets statement. 

Last updated on June 21, 2023.